What is currency conversion fee and how much is currency conversion fee?

Friends who travel abroad all know that there is a currency conversion fee, and there are two issues in the currency conversion fee that we are more concerned about, namely, the definition of currency conversion fee and the handling fee of currency conversion fee. Then I will briefly introduce the knowledge of currency conversion fee.


Introduction to currency conversion fee
Currency conversion fee refers to the fees charged by international card organizations and issuing banks when consumers use dual currency credit card or single foreign currency credit card to consume foreign currency on the international settlement line.

When the cardholder of UnionPay standard card consumes abroad, UnionPay will convert one-time (without intermediate currency transfer) and only carry out currency conversion according to the specified exchange rate without charging any currency conversion fee. This is a major advantage of UnionPay card which is different from visa and other international cards. UnionPay card overseas to free currency conversion fee is to stimulate consumption.

Currency conversion fee
If you have a credit card in both RMB and USD, you need to pay 30 to a company. In the process of payment, there are two conversions of RMB to USD and GBP. Among them, most of the credit cards use the exchange rate directly, and the extra face charge is free.

However, the conversion of U.S. dollar into pound sterling needs to charge foreign currency exchange commission on the basis of exchange rate. If the exchange rate of US dollar to RMB is 6:1 and the exchange rate is 2:1, the foreign currency conversion fee charged by the general credit card company is 2%. Therefore, the currency conversion fee that the user needs to pay is 30 × 2 × 1 + 2% × 6, which is equal to 367.2 yuan.

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